Renewed bargain hunting emerged from the sidelines, lifting shares to a high of RM3.53 on Thursday before pausing owing to an apparent light profit-taking activity.
Based on the daily chart, Daibochi appears making a fresh attempt to resume its climb. A push above the RM3.55 barrier, followed by a decisive penetration of the RM3.60 strong hurdle would signal a rally continuation.
If successful, the immediate upside would be to challenge the previous massive rally peak of RM3.87, established on March 10, 2010. The upper stiff resistance is resting at the RM4 mark and the next, at the RM4.08 level, also the historical high set on May 2, 1996.
Elsewhere, the oscillator per cent K and the oscillator per cent D of the daily slow-stochastic momentum index were rising. It had triggered a short-term buy the previous Friday.
Though the daily moving average convergence/divergence histogram remained in sell mode, it had indicated a pretty encouraging convergence pictogram.
Technically, indicators are improving, implying the resumption of a rally may be on the cards.
As for the downside, support is pegged at the 14-day and 21-day simple moving averages, lying at the RM3.45 and RM3.40 mark respectively.
A slipped below the RM3.33 crucial floor will have a significant negative impact on the outlook going forward.
By K.M. LEE, biz.thestar.com.my
The comments above do not represent a recommendation to buy or sell.
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